Security Interest – an interest in personal property or fixtures which secures payment or performance of an obligation, or with respect to real property, a mortgage or other lien

1. A property interest created by agreement or by operation of law to secure performance of an obligation, esp. repayment of a debt; specifically, an interest in personal property or fixtures securing payment or performance of an obligation. * Although the UCC limits the creation of a security interest to personal property, the Bankruptcy Code defines the term to mean “a lien created by an “agreement.” 11 USCA § 101(51). [1]

1. Under the Uniform Commercial Code, “an interest in personal property or fixtures which secures payment or performance of an obligation. “ See purchase money security interest. See also security agreement.

perfected security interest: ( 1955) A security interest that complies with the statutory requirements for achieving priority over a trustee in bankruptcy and unperfected interests. * A perfected interest may also have priority over another interest that was perfected later in time. See PERFECT.

purchase-money security interest: (1957) A security interest that is created when a buyer uses the lender’s money to make the purchase and immediately gives the lender security by using the purchased property as collateral (UCC § 9403); a security interest that is either (1) taken or retained by the seller of the collateral to secure all or part of its price or (2) taken by a person who by making advances or incurring an obligation gives value to enable the debtor to acquire rights in or the use of collateral if that value is in fact so used If a buyers purchase of a boat, for example, rs financed by a bank that loans the amount of the purchase price, the bank’s security interest in the boat that secures the loan is purchase money security interest. — Abbr. PMSI — aka purchase-money interest.

unperfected security interest:(1957) A security interest held by a creditor who has not established priority over any other creditor. * The only priority is over the debtor.

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